Asia on Pressure as Yields Spiked

STATE OF THE MARKETS

Asia on pressure as yields spiked. Asian equities will be on pressure Friday as global equities from S&P500 (-2.45%), Dow (-1.75%), Nasdaq (-3.52%), FTSE100 (-0.11%), all tumbled Thursday after US 10Y yields spike above 1.55% for the first time in 12 months. Expectation of rising inflation in the goods and services, prompted bond markets sell-off that weighed heavy on equities. As of this writing, 9am Hong Kong, Nikkei already gapped down below 26,900 and falling more than 2%.

Crude edged slightly lower on the concerns, trading in sideways with selling pressure below the $63.50/bl mark. Further profit taking in the European session later may see the black gold tumbled further as Canadian markets bid Dollar earlier. Rising yields weighed heavy on gold that was in heavy bidding as London closed earlier in the $1,770/80 region, as selling pressure continues as of this writing.

The short term concerns sent safe-haven Swiss to the driver seat in demand while followed by Euro, Dollar and Yen. Flight to safety was seen as managers rotated to bonds from high valued risk assets, which led to the fall in high beta Comdolls. Sterling was sent to the back burner in the medium term while sentiments in the long term accounts remain relatively unchanged.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term which is daily turnover, MT is Medium Term which is weekly 
and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

** % Change here refer to price

WALL ST TOP FLOWS

** % change here refers to volume

TOP 5 BLOCK ORDERS

OUR PICK – No new pick.

No new pick going into weekend. We believe the rising yields are transitional as the new $1.9T stimulus is yet to be released. Assets managers may rotate into bonds from high valued risk assets, but we are seeing more small and mid caps demands at this point. Despite the rout, stocks like GME, CDXC, WKHS, PAND, DYNT and many more are gaining in price and volume. They warrant further research. The dip would be a perfect opportunity for retail traders to grab small to mid caps that the institutions are buying. 

Trades updates: KR remains active, Euro reached all targets, TEVA and Gold are active.

Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.